How to Buy Crypto in the UK: A Beginner’s Guide

Ruby Layram 26th Mar 2025 No Comments

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If you’re wondering how to buy crypto, you’re in the right place! In this guide, we will break down how to buy cryptocurrency in the UK- in a way that won’t make your brain hurt!

If you haven’t already, check out our complete guide on how to get started with crypto. In this guide, we go into a bit more detail about the ins and outs of cryptocurrency and what it could mean for your portfolio.

Also, check out our rundown of the best FCA registered exchanges. This will give you a great starting point.

Step 1: Choose a Crypto Exchange

First things first, you need a place to buy your crypto. Think of a crypto exchange like a digital stock market, but instead of shares, you’re trading digital coins.

Some of the best options in the UK include:

Coinbase: Super beginner-friendly but slightly higher fees.
Binance: Huge range of coins and lower fees, but a bit more complex.
Kraken: Good security and customer service.
eToro: Great for social trading and beginners.
Gemini: Solid security and an easy-to-use platform.

Each exchange has its own pros and cons, so pick the one that suits your needs.

Step 2: Set Up and Verify Your Account

Now that you’ve picked your exchange, it’s time to create an account. This usually involves:

Signing up with your email and creating a password (pick something stronger than “password123” please!).
Verifying your identity (KYC- Know Your Customer). This means uploading a photo of your passport or driving licence and maybe a selfie to prove you’re not a bot.
Enabling two-factor authentication (2FA). This adds an extra layer of security to your account.

Step 3: Deposit Funds

Before you can buy crypto, you need to put some cash into your exchange account. Most UK platforms let you fund your account via:

Bank transfer: Usually free but takes a little longer.
Debit/credit card: Instant but often comes with higher fees.
PayPal: Convenient but limited in options.
Apple Pay/Google Pay: Quick and easy.

Check the fees and processing times before you commit. It’s also a good idea to give your banking provider a heads-up if you’re planning on buying a significant amount of crypto – this will prevent your account from getting frozen.

Step 4: Buy Your Crypto

Now the fun part- getting your hands on some digital coins! Here’s how to buy crypto from an exchange:

Go to the “Buy” section of your exchange.
Choose the cryptocurrency you want (Bitcoin, Ethereum, Dogecoin—whatever tickles your fancy).
Enter how much you want to buy (either in GBP or the crypto amount).
Confirm your purchase.

Boom- you now own crypto!

The crypto will appear in your account shortly- the exact time can vary depending on how busy the network it.

Step 5: Store Your Crypto Safely

Leaving your crypto sitting on an exchange is a bit like keeping all your cash under your mattress—not the safest move. Instead, consider a crypto wallet:

Hot Wallets (online): Easier to access, but more vulnerable to hacks.
Cold Wallets (offline): Much safer but requires extra effort.

Popular options include Ledger, Trezor, and MetaMask (for Ethereum-based tokens).

Step 6: Stay Smart and Secure

Once you have bought your first bit of crypto, it’s time to think ahead. If you’re planning on investing for the long-term, consider increasing your holdings over time to take advantage of compound growth.

You should also consider crypto staking– a way to earn passive interest on long-term crypto investments.

Here are some top tips to keep your crypto safe:

Avoid scams: If it sounds too good to be true, it probably is.
Don’t share your private keys: This is like giving away your bank PIN.
Beware of FOMO: The market moves fast; don’t buy into the hype without research.

What About Taxes?

Yep, HMRC wants its cut. In the UK, crypto is subject to Capital Gains Tax (CGT) if you make a profit. If you’re just holding, you don’t pay tax, but if you sell or trade, keep records for tax reporting.

If you want to minimize the amount that you hand over to HMRC, consider balancing your portfolio out with tax efficient investments such as Gold sovereigns or an ISA.

Buying crypto is a great way to dip your toes into an up-and-coming market that has a LOT of room for growth. Check out our other cryptocurrency guides to learn more!

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Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. Companies listed above are not necessarily endorsed by Money Magpie. When investing your capital is at risk.